Ichor Holdings
Ichor Holdings designs and manufactures fluid delivery subsystems, gas delivery subsystems, and related precision components used in semiconductor capital equipment. Its products are built into wafer fabrication tools sold primarily to OEMs such as Lam Research and Applied Materials, making Ichor a critical outsourced subsystem supplier to the chip equipment supply chain.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueEngineered fluid handling modules used in semiconductor manufacturing tools.
Subsystems that route and control process gases and chemicals in wafer fab equipment.
Fabricated metal parts, weldments, and machined components used in OEM equipment builds.
Lower-volume non-semiconductor work involving recurring builds and new design activity.
Customers
Ichor sells primarily to semiconductor equipment OEMs, with direct relationships to a small number of large customers. In 2025, Lam Research and Applied Materials together represented 76% of total sales, showing how concentrated the customer base is and how closely Ichor’s demand tracks OEM capital spending. The company also serves a smaller aerospace and defense customer base, where it has recurring work and design collaboration.
Buy fluid, gas, and chemical delivery subsystems plus precision components for wafer fabrication tools.
Lam Research, Applied Materials, and similar customers that drive most revenue and require close engineering support.
Buy specialized subsystem work and recurring builds, with some new design collaboration.
Strategy
Ichor’s strategy is to stay tightly embedded with semiconductor OEM customers through early engagement, engineering depth, and flexible manufacturing. Management is also rationalizing the global footprint to improve efficiency, reduce excess capacity, and align production with customer demand while preserving the ability to scale in cyclical upturns.
The business depends on a small number of semiconductor equipment customers that value engineering collaboration and reliability.
Closing lower-utilization sites and moving work into larger facilities should improve operating efficiency and align capacity with demand.
Aerospace and defense can reduce dependence on a highly cyclical end market and a few OEM customers.
Geography
Q1/2026Ichor operates globally and has been rationalizing its manufacturing footprint to better match customer demand. In 2025 it closed facilities in Scotland and Korea while transitioning certain manufacturing activities and machining assets into expanded high-volume facilities, indicating a shift toward a more concentrated and efficient operating base. The company also notes Singapore tax holiday benefits, showing that international operations remain financially relevant.
Share of the revenue the company reports by geography.
Risks
Ichor is highly exposed to semiconductor capital equipment cycles and to a very small number of OEM customers, so order timing or share loss can quickly affect revenue. Its manufacturing model also carries execution risk from supply chain disruptions, quality issues, warranty claims, and restructuring costs tied to footprint changes. International operations add foreign exchange, tax, geopolitical, and regulatory complexity.
- Customer concentrationImpact: CriticalLikelihood: High
Two customers accounted for 76% of 2025 sales, so a loss or slowdown at one account would materially affect revenue and margins.
Exposure: Lam Research and Applied Materials
- Semiconductor capital equipment cyclicalityImpact: HighLikelihood: High
Demand depends on OEM capital spending, which can swing with industry cycles, tariffs, trade restrictions, and macro conditions.
Exposure: Over 90% of sales came from semiconductor capital equipment in 2025
- Supply chain and manufacturing disruptionImpact: HighLikelihood: High
The company relies on a limited number of suppliers and complex manufacturing processes, so shortages or interruptions can delay shipments and raise costs.
- Restructuring and footprint transition executionImpact: MediumLikelihood: High
Closing facilities and relocating production can create severance, impairment, and ramp-up risks that pressure margins and service levels.
- Foreign exchange and international operating riskImpact: MediumLikelihood: Medium
Global operations expose the company to FX movements, tax changes, geopolitical events, and cross-border compliance issues.
Accounting
Judgemental itemsSales are recognized when control transfers, generally at shipment, so timing of deliveries can shift revenue between quarters.
Impact: Quarterly comparability
Cyclical demand and changing product mix can create excess or obsolete inventory risk and affect cost of sales.
Impact: Gross margin
Facility closures and footprint rationalization can generate severance, exit, and impairment charges.
Impact: Operating margin
Singapore tax holiday benefits, withholding taxes, and Pillar Two minimum tax rules affect the tax rate and earnings.
Impact: Effective tax rate
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Last updated: 24/09/2026